Naspers invests €387M in European food delivery business Delivery Hero

Continuing its massive spending spree in Europe, the global technology and media investment conglomerate, Naspers, has invested €387 million ($421.3 million) in the online food ordering and delivery business Delivery Hero.

Over 150,000 restaurants use the delivery service, which has previously raised money from investors including Rocket Internet, the controversial German startup incubator, Insight Venture Partners, General Atlantic, and several undisclosed US-based fund managers.

“Food ordering and delivery presents an attractive opportunity for us. It is a large, under-penetrated, and growing market with potential for success across a broad range of geographies that Naspers knows well,” Naspers chief executive Bob van Dijk said in a statement.

Indeed, Naspers has holdings in a number of food delivery companies already. In 2015 the company invested in the Brazilian mobile application developer Movile, which owns a stake in the food delivery service iFood.

As we wrote in 2015:

The on-demand delivery market has now raised more money in the first four months of 2015 than it did in all of 2014, and the latest beneficiary is the Brazilian mobile application and content developer Movile.

The global competition for food delivery continues to sizzle, with newer premium entrants such as Deliveroo, Uber Eats and Amazon, joining the food fray.

Speaking on the Naspers investment, Delivery Hero chief executive Niklas Östberg said, “We are delighted to welcome such a renowned and strong investor with a proven track record in building successful platforms around the world. Naspers’ capital, relationships and knowhow will support our growth momentum as we continue to focus on creating an amazing takeaway experience globally.”